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The High Court of Kerala sided with the petitioner, ruling that the services provided were incorrectly classified.
The court directed a reclassification under "Other Than Broadcasting Services," leading to a lower applicable GST rate.
Facts of the Case:
Asianet Digital Network Pvt. Ltd., the petitioner, contested the classification of its services under the Goods and Services Tax (GST) regime.
The controversy revolved around whether the services provided were to be classified as "Broadcasting Services" or "Other Than Broadcasting Services," significantly impacting the applicable GST rate.
Issue:
The issue was the determination of the correct classification of services provided by the petitioner under the GST regime, which affected the rate of tax imposition.
Argument by the Petitioner:
The petitioner argued that their services should be classified under "Other Than Broadcasting Services," which would subject them to a lower GST rate, asserting that their services were more aligned with content distribution than broadcasting.
Court Judgment:
The High Court of Kerala sided with the petitioner, ruling that the services provided were incorrectly classified. The court directed a reclassification under "Other Than Broadcasting Services," leading to a lower applicable GST rate.
Title: Asianet Digital Network Pvt. Ltd. vs Union of India
Court: Kerala High Court
Citation: WP(C) Nos. 30147/2022, 3611/2024
Dated: 08-Apr-2024
Impact Analysis:
This judgment provides clarity on the classification of digital content distribution services under GST, potentially lowering the tax burden on similar service providers.